CTS Corporation

Good morning, and thank you for attending today's CTS Q1 2023 earnings call. My name is Donyell, and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. It is now my pleasure to pass the conference over to our host, Kieran O'Sullivan, CEO. Kieran, you may proceed.

Thanks, Daniel. Good morning and thank you for joining our first quarter 2023 earnings call. We posted solid quarterly top and bottom line results in a mixed global economy. The semiconductor supply challenge we highlighted the past two quarters has been resolved due to the focus and management of our transportation team. Our focus on profitable growth, driving diversification through our advanced materials capability and growth through electrification in mobility markets with innovative new products remain our highest priorities. We are energized and focused on achieving our long-term strategic growth goals and improving our operational performance while we navigate the current macroeconomic challenges. For the first quarter of 2023, sales were 146 million, a decrease of 1.2% from the same period last year. Adjusted gross margin was 35.4% down 180 basis points from the same period in 2022. Foreign currency changes impacted our gross margin unfavorably by approximately 120 basis points. Adjusted EBITDA margin was 21.9%, down 164 basis points versus the first quarter of last year. Adjusted diluted earnings per share was 61 cents, down six cents compared to the first quarter of 2022. Operating cash flow was 11.2 million compared to 19.3 million in the first quarter of last year. New business awards were stronger in the quarter. We added nine new customers and had a book to bill of 0.96 and total booked business and transportation increased to 1.5 billion. We continue to make progress on our diversification strategy as non-transportation sales increased to approximately 49% of our overall revenue, up from 46% in the first quarter of last year. Ashish will now take us through the Safe Harbor Statement. Ashish?

I would like to remind our listeners that this conference call contains forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in the press release issued today, and more information can be found in the company's SEC filings. To the extent that today's discussion refers to any non-GAAP measures under Regulation G, the required explanations and reconciliations are available in the Investors section of the CTS website. I will now turn the discussion back to our CEO, Kirno Sullivan.